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Suntech Reports Fourth Quarter and Full Year 2008 Financial Results
SAN FRANCISCO and WUXI, China, Feb 18, 2009 /PRNewswire-Asia via COMTEX/ -- Suntech Power Holdings Co., Ltd. (NYSE: STP), the world's largest photovoltaic (PV) module manufacturer, today announced financial results for the fourth quarter and full year ended December 31, 2008.
    Fourth Quarter 2008 Financial Highlights(1)

    -- Total net revenues grew 4.2% year-over-year to $414.4 million.

    -- GAAP gross margin was 0.6% and non-GAAP(2) gross margin was 0.9%.
       Excluding the provision for inventory and purchase commitments,
       adjusted non-GAAP consolidated gross margin in the fourth quarter
       was 13.1%.

    -- GAAP net loss was $65.9 million, or negative $0.42 per diluted
       American Depository Share (ADS).  On a non-GAAP basis, Suntech's net
       loss was $42.4 million, or negative $0.27 per diluted ADS.  Each ADS
       represents one ordinary share.

    -- Net debt decreased by $273.7 million to $1,117.8 million as of
       December 31, 2008.

    Full Year 2008 Financial Highlights(1)

    -- Total net revenues grew 42.7% year-over-year to $1,923.5 million.

    -- Full year 2008 total shipments of solar products grew 36.0%
       year-over-year to 497.5 MW.

    -- GAAP gross margin was 17.8% and non-GAAP(2) gross margin was 18.2%.

    -- GAAP net income for the full year was $111.0 million or $0.66 per
       ADS. On a non-GAAP basis, Suntech's net income for the full year was
       $149.7 million or $0.89 per diluted ADS.

    -- Achieved 1GW solar cell and module production capacity.

"Customer recognition of Suntech's high performance and premium quality modules enabled us to deliver close to 500MW in the full year 2008 and extend our position as a world leader in solar," said Dr. Zhengrong Shi, Suntech's Chairman and CEO. "During 2008, we bolstered our on-the-ground customer service and support capability by opening branches in key markets and hiring experienced solar professionals, achieved 1GW production capacity, and demonstrated our strength in solar innovation with the successful commercialization of our Pluto technology."

"We believe that we are now in a position to service all avenues of solar demand globally, including residential roof-top, commercial roof-top, ground mounted and utility scale. In particular, our continued investment in the U.S. should position us for strong growth in that key market and its burgeoning utility-scale segment via our systems integration unit, Suntech Energy Solutions, and our project development joint venture, Gemini Solar."

"Despite the challenging market conditions, we are confident that we are well positioned to expand our market share in 2009. We believe that the project financing environment is improving and will continue to do so as the year progresses, leading to further growth of the solar industry. We are confident that Suntech's reputation as a global solar leader will benefit us as more and more customers realize the value in partnering with a company that offers stability, first class service, industry-leading scale, superior technology, quality and a broad product portfolio," added Dr. Shi.

    RECENT BUSINESS HIGHLIGHTS

    Silicon Procurement
    -- Suntech and MEMC Electronic Materials amended their 10-year silicon
       wafer supply agreement. As amended, the dollar value of silicon
       wafer purchases from MEMC remains unchanged, but a volume increase
       and a price reduction for 2009 have been effectuated.

    -- Suntech acquired a minority stake in Asia Silicon Co. Ltd, an
       independent polysilicon producer, for a total cash consideration of
       approximately $8.1 million. Suntech previously entered into an
       agreement to purchase up to $1.5 billion high purity polysilicon
       from Asia Silicon over a seven-year period. Polysilicon cost
       decreases to less than $40 per kilogram during the term of the
       agreement.

    Notable PV Projects
    -- Suntech was chosen to design and construct a BIPV system totaling
       3MW on the China and Theme Pavilions at the World Expo Shanghai 2010.
       The project will be the largest BIPV installation in China.

    -- Suntech supplied 5MW of Suntech solar panels for the largest solar
       plant in the Middle East, a 10MW solar electricity system to power
       Masdar City, the world's first carbon neutral city being built in
       Abu Dhabi, United Arab Emirates. The solar system is being built and
       designed by leading Abu Dhabi based solar power system integrator,
       Enviromena Power Systems.

    Product Offering Expansion
    -- Suntech entered into an exclusive agreement giving Suntech rights
       related to the worldwide manufacturing, distribution and marketing
       of Applied Solar's building integrated solar roof tile product,
       SolarBlend(TM), and roof membrane product, SolarEze(TM). The
       agreements combine Suntech's industry-leading products with Applied
       Solar's innovative BIPV applications to provide a more comprehensive
       set of product offerings to the residential and commercial market.

    U.S. Dealer Network
    -- Suntech continued expanding its dealer network of residential
       rooftop installers and integrators in the U.S. Currently, Suntech's
       network includes over 100 dealers, up from 30 at the end of the
       third quarter of 2008.

    Technology
    -- Suntech has a fully operational 34MW Pluto PV cell line and is in
       the process of adding another 68MW of Pluto capacity. Suntech
       expects to receive industry certification for Pluto PV modules in
       the second quarter of 2009 and targets shipments of more than 50MW
       of Pluto modules in 2009.

    -- The Pluto high efficiency technology consistently achieves
       conversion efficiencies of close to 17% on multi-crystalline PV
       cells and close to 19% on mono-crystalline PV cells. Suntech
       anticipates that the higher conversion efficiencies will improve
       power output by up to 12% above conventional screen-printed PV cells,
       enable improved space utilization and reduce installation and other
       balance of system costs.

    Convertible Senior Note Repurchase
    -- Through December 31, 2008, Suntech repurchased $93.8 million
       aggregate principal amount of its 0.25% Convertible Senior Notes due
       2012 for cash consideration of $61.0 million. As a result, Suntech
       realized a net gain of approximately $31.1 million.

    Capital and Credit Facilities
    -- Suntech had approximately $2.4 billion of approved credit lines to
       be used for fixed asset purchase, working capital or trade financing
       as of December 31, 2008. Of these credit facilities approximately
       $1.2 billion had been drawn down as of December 31, 2008. Suntech
       expects that its capital will be sufficient to cover its capital
       expenditures in 2009 while maintaining adequate working capital to
       support its operations.



    Fourth Quarter 2008 Results


                             Net                   Non-GAAP      Non-GAAP
                          Revenues               Gross Profit  Gross Margin

                            (in $      % of Net      (in $
                          millions)    Revenues    millions)        (%)

    Standard PV Modules    $382.6      92.3 %       $11.4          3.0 %
    Others                  $31.8       7.7 %       ($7.8)       (24.0%)
    Total Net Revenues     $414.4       100 %        $3.6          0.9 %

    Provision for
     inventory and
     purchase
     commitment                                     $50.7         12.2 %
    Adjusted Non-GAAP
    Gross Profit                                    $54.3         13.1 %


Total net revenues for the fourth quarter of 2008 were $414.4 million, a decrease of 30.3% from $594.4 million in the third quarter of 2008. The sequential decrease in revenues was primarily due to a decrease in shipments and the average selling price of PV products.

Non-GAAP gross profit for the fourth quarter of 2008 was $3.6 million, compared to $129.7 million for the third quarter of 2008.

Fourth quarter of 2008 non-GAAP consolidated gross margin was 0.9%, compared to 21.8% in the third quarter of 2008. Gross margin decreased from the third quarter of 2008 primarily due to a sequential decrease in the average selling price of PV products and a provision for inventory and purchase commitments of $50.7 million in total, reflecting the rapid decrease in the silicon and module prices in the fourth quarter. The provision for inventory and purchase commitments had a 12.2% negative impact on margins. Excluding the provision for inventory and purchase commitments, adjusted non- GAAP consolidated gross margin in the fourth quarter was 13.1%, and adjusted non-GAAP net income margin was 2.0%.

Non-GAAP operating expenses in the fourth quarter of 2008 totaled $41.9 million or 10.1% of total net revenues, compared to $37.1 million or 6.2% of total net revenues in the third quarter of 2008. The increase was primarily due to an increase in provisions for doubtful debts and additional compensation expenses attributable to employees at Suntech Energy Solutions, which was acquired during the fourth quarter.

Non-GAAP loss from operations for the fourth quarter of 2008 was $38.2 million, compared to income from operations of $92.6 million in the third quarter of the 2008. Non-GAAP operating margin was negative 9.2% in the fourth quarter of 2008, compared to positive 15.6% in the third quarter of 2008.

Net interest expense was $8.0 million in the fourth quarter of 2008 compared to net interest expense of $7.9 million in the third quarter of 2008.

In January 2009, Suntech adopted Financial Accounting Standards Board Staff Position No. APB 14-1, Accounting for Convertible Debt Instruments that may be Settled in Cash Upon Conversion ("FSP APB 14-1"). The Company is currently assessing the impact of adopting FSP APB 14-1, which the Company believes will be material to its results of operations. FSP APB 14-1 requires that the liability and equity components of convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement) be separately accounted for in a manner that reflects an issuer's nonconvertible debt borrowing rate.

Foreign currency exchange loss was $3.2 million in the fourth quarter of 2008, compared to a loss of $16.6 million in the third quarter of 2008. The decrease was primarily due to a revaluation gain from the depreciation of net liabilities denominated in CNY in the fourth quarter of 2008. The exchange gain was largely offset by the revaluation loss resulting from the significant depreciation of net assets denominated in EUR.

Net other expenses increased to $19.7 million in the fourth quarter of 2008 from $3.2 million in the third quarter of 2008. The increase in net other expenses was primarily due to an investment impairment of $48.8 million for Suntech's investments in Hoku and Nitol, which was partially offset by a net gain of $31.1 million from the repurchase of the Convertible Senior Notes at a discount.

Non-GAAP net loss for the fourth quarter of 2008 was $42.4 million, or negative $0.27 per diluted ADS, compared to non-GAAP net income of $60.3 million, or $0.35 per diluted ADS in the third quarter of 2008.

On a GAAP basis, for the fourth quarter of 2008 gross profit was $2.3 million. Consolidated gross margin was 0.6% for the fourth quarter of 2008.

On a GAAP basis, operating expenses for the fourth quarter of 2008 were $46.2 million or 11.1% of total net revenues. Loss from operations was $43.8 million for the fourth quarter of 2008. Net loss for the fourth quarter of 2008 was $65.9 million, or negative $0.42 per diluted ADS.

In the fourth quarter of 2008, capital expenditures, which were primarily related to expanding production capacity and constructing Suntech's production facilities, totaled $109.1 million. Depreciation and amortization expenses totaled $11.6 million.

Cash and cash equivalents increased to $507.8 million as of December 31, 2008 from $394.6 million as of September 20, 2008. The increase was mainly due to the accelerated collection of VAT recoverable and the liquidation of short- term investments. The increase was partially offset by the cash payments for the repurchase of the Convertible Senior Notes and repayment of bank borrowings. As a result of the foregoing, the net debt balance decreased from $1,391.5 million as of September 30, 2008 to $1,117.8 million as of December 31, 2008.

Restricted cash was $70.7 million as of December 31, 2008.

Inventory totaled $231.9 million as of December 31, 2008 compared to $247.9 million as of September 30, 2008. The decrease was primarily caused by the inventory provision.

Value-added tax recoverable totaled $75.7 million as of December 31, 2008, compared to $201.8 million as of September 30, 2008. The decrease was mainly due to the accelerated collection of some value-added tax recoverable in the fourth quarter of 2008.



    Full Year 2008 Results

                             Net                   Non-GAAP      Non-GAAP
                          Revenues               Gross Profit  Gross Margin

                            (in $      % of Net      (in $
                          millions)    Revenues    millions)        (%)

    Standard              $1,785.8      92.8 %      $343.8        19.3 %
    PV
    Modules
    Others                  $137.7       7.2 %        $5.7         4.1 %
    Total Net             $1,923.5       100 %      $349.5        18.2 %
    Revenues


Total net revenues for the full year 2008 were $1,923.5 million, representing a 42.7% increase from 2007.

On a non-GAAP basis, the full year 2008 gross profit was $349.5 million, an increase of 22.7% year-over-year. 2008 consolidated gross margin was 18.2% compared to 21.1% in 2007. Income from operations was $205.7 million compared to $215.1 million in 2007. Net income was $149.7 million or $0.89 per diluted ADS, compared to non-GAAP net income of $201.0 million or $1.19 per diluted ADS in the full year 2007.

On a GAAP basis, for the full year 2008 gross profit was $342.9 million, an increase of 25.1% year-over-year. 2008 gross margin was 17.8% compared to 20.3% in 2007. Income from operations was $182.5 million, a decrease of 0.8% year-over-year. Net income was $111.0 million, a decrease of 35.2% year-over- year, or $0.66 per diluted ADS, compared to net income of $171.3 million or $1.02 per diluted ADS in the full year 2007.

In the full year 2008, capital expenditures, which were primarily related to expanding production capacity and constructing Suntech's production facilities, totaled $347.9 million. Depreciation and amortization expenses totaled $39.3 million.

Business Outlook

Based on current operating conditions, Suntech expects revenues for the first quarter of 2009 to be in the range of $340 million to $380 million, assuming an exchange rate of $1.28 U.S. dollars to the Euro in the first quarter 2009. GAAP consolidated gross margin in the first quarter of 2009 is expected to be in the range of 12% to 15%.

Suntech expects full-year 2009 shipments of more than 800MW. Suntech intends to hold PV cell production capacity at 1GW in 2009 until credit market visibility improves. Suntech expects capital expenditures of approximately $100 million in 2009. The majority of 2009 capital expenditures will be utilized to retrofit existing production capacity to the high efficiency Pluto technology and the completion of the thin film facility.

Fourth Quarter and Full Year 2008 Conference Call Information

Suntech management will host a conference call today, Wednesday, February 18, 2009 at 8:00 a.m. Eastern Time (which corresponds to 9:00 p.m. Beijing/Hong Kong time and 1:00 p.m. Greenwich Mean Time on February 18, 2009) to discuss the Company's results.

To access the conference call, please dial +1-617-786-2963 (for U.S. callers) or +852-3002-1672 (for international callers) and ask to be connected to the Suntech earnings conference call. A live and archived webcast of the conference call will be available on Suntech's website at http://www.suntech-power.com under Investor Center: Financial Events.

A telephonic replay of the conference call will be available until March 4, 2009 by dialing +1-617-801-6888 (passcode: 58672451).

About Suntech

Suntech Power Holdings Co., Ltd. (NYSE: STP) is the world's leading solar energy company as measured by production output of solar modules. Suntech designs, develops, manufactures, and markets premium-quality, high-output, cost-effective and environmentally friendly solar products for electric power applications in the residential, commercial, industrial, and public utility sectors. Suntech's patent-pending Pluto technology for crystalline silicon solar cells improves power output by up to 12% compared to conventional production methods.

Suntech also offers one of the broadest ranges of building-integrated solar products under the MSK Solar Design Line(TM). Suntech designs and delivers commercial and utility scale solar power systems through its wholly owned subsidiaries Suntech Energy Solutions and Suntech Energy Engineering and will own and operate projects greater than 10 megawatts in the United States through Gemini Solar Development Company, a joint venture with MMA Renewable Ventures. With regional headquarters in China, Switzerland and San Francisco and sales offices worldwide, Suntech is passionate about improving the environment we live in and dedicated to developing advanced solar solutions that enable sustainable development. For more information, please visit http://www.suntech-power.com .

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements, and includes our ability to grow in the United States and in the utility scale segment, our ability to expand our market share in 2009, whether the project financing environment will improve in 2009, our ability to receive industry certification of Pluto and total shipment of Pluto modules 2009, our ability to repurchase or refinance the convertible senior notes, estimated Q1 2009 revenue and gross margin, and estimated full year 2009 shipments and capital expenditures. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward- looking statements. Further information regarding these and other risks is included in Suntech's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. Suntech does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

About Non-GAAP Financial Measures

To supplement its consolidated financial results presented in accordance with GAAP, Suntech uses the following non-GAAP measures which are adjusted from the most directly comparable GAAP results to exclude items related to share-based compensation, restructuring expenses amortization expenses incurred from the purchase price allocation effect related to the MSK Corporation, KSL-Kuttler Automation Systems GmbH and Suntech Energy Solutions Inc. acquisitions, extraordinary impairment on investments and gain from convertible notes buy-back. Suntech believes that non-GAAP information is useful for analysts and investors to evaluate Suntech's future on-going performance because they enable a more meaningful comparison of Suntech's projected cash earnings and performance with its historical results from prior periods. This information is not intended to represent funds available for Suntech's discretionary use and is not intended to represent or to be used as a substitute for gross profit/margin, operating expenses, operating income or net income as measured under GAAP. Many analysts covering Suntech use the non- GAAP measures as well. These non-GAAP measures are not in accordance with or an alternative for GAAP financial data, the non-GAAP results should be reviewed together with the GAAP results and are not intended to serve as a substitute for results under GAAP, and may be different from non-GAAP measures used by other companies. For more information on these non-GAAP financial measures, please see the tables captioned "Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures" set forth at the end of this release and which shall be read together with the accompanying financial statements prepared under GAAP.

    (1)   Selected highlights of the Company's fourth quarter 2008 results
          are set forth in the text of the release and should be read
          together with the detailed financial statements at the end of
          this release.

    (2)   All non-GAAP measures exclude share-based compensation expenses,
          restructuring expenses and amortization expenses incurred from
          purchase price allocation related to the acquisitions of MSK
          Corporation and KSL-Kuttler Automation Systems GmbH and Suntech
          Energy Solutions Inc. acquisitions, extraordinary impairment on
          investments and gain from convertible notes buy-back. For further
          details on non-GAAP measures, please refer to the reconciliation
          table and a detailed discussion of management's use of non-GAAP
          information set forth in this press release.

    Note: The quarterly consolidated income statements are unaudited. The
          condensed consolidated balance sheets are derived from Suntech's
          unaudited consolidated financial statements.


    Note: The quarterly and full year consolidated income statements are
          unaudited. The condensed consolidated balance sheets are derived
          from Suntech's unaudited consolidated financial statements.



                        SUNTECH POWER HOLDINGS CO., LTD.
                      CONDENSED CONSOLIDATED BALANCE SHEET
                                   (In $'000)
                                                    As of             As of
                                                September 30,      December 31,
                                                     2008              2008
    ASSETS
    Current assets:
      Cash and cash equivalents                    394,550           507,789
      Restricted cash                              124,142            70,710
      Inventories                                  247,885           231,874
      Accounts receivable                          232,775           213,118
      Value-added tax recoverable                  201,800            75,667
      Advances to suppliers                         77,268            56,873
      Short-term investments                       145,594                --
      Other current assets                         155,436           165,887
    Total current assets                         1,579,450         1,321,918

    Property, plant and equipment, net             574,899           684,497
    Intangible assets, net                         160,828           176,677
    Goodwill                                        78,821            87,595
    Investments in affiliates                      132,921           221,106
    Long-term prepayments                          250,761           248,807
    Long-term loan to suppliers                     83,821            83,972
    Amount due from related parties                287,142           277,991
    Other non-current assets                       191,995           146,214
    TOTAL ASSETS                                 3,340,638         3,248,777

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current liabilities:
       Short-term borrowings, including
        current portion of long-term bank
        borrowings                                 704,120           638,426
       Accounts payable                             84,682           117,499
       Other current liabilities                   161,595           220,810
    Total current liabilities                      950,397           976,735

    Long-term bank borrowings                        6,893             5,894
    Convertible notes                            1,075,000           981,236
    Accrued warranty costs                          36,498            41,430
    Other long-term liabilities                    129,113           137,822
    Total liabilities                            2,197,901         2,143,117

    Minority interest                                8,090             8,478

    Total shareholders' equity                   1,134,647         1,097,182

    TOTAL LIABILITIES AND SHAREHOLDERS'
     EQUITY                                      3,340,638         3,248,777



                          SUNTECH POWER HOLDINGS CO., LTD
                         CONSOLIDATED INCOME STATEMENT (*)
              (In $'000, except share, per share, and per ADS data)

                                                    2007              2008

    Net revenues                                 1,348,262         1,923,509
    Total cost of revenues                       1,074,205         1,580,622

    Gross profit                                   274,057           342,887

    Operating expenses
    Selling expenses                                30,562            59,328
    General and administrative expenses             44,414            85,737
    Research and development expenses               15,055            15,314
    Total operation expenses                        90,031           160,379

    Income from operations                         184,026           182,508

    Interest expenses                              (23,991)          (57,573)
    Interest income                                 31,207            32,572
    Foreign exchange loss                           (8,982)          (14,404)
    Other income (expense)                             226           (30,012)

    Income before income taxes                     182,486           113,091
    Tax provision                                  (13,234)           (3,785)

    Net income after taxes before
     minority interest and equity in
     earnings of affiliates                        169,252           109,306
    Minority interest                                2,722             1,442
    Equity in (loss) earnings of affiliates           (699)              287

    Net income                                     171,275           111,035

    Net income per share and per ADS:
    - Basic                                           1.13              0.72
    - Diluted                                         1.02              0.66

    Shares used in computation:
    - Basic                                    151,699,307       154,700,584
    - Diluted                                  169,257,283       170,491,770



                         SUNTECH POWER HOLDINGS CO., LTD.
                          CONSOLIDATED INCOME STATEMENT
              (In $'000, except share, per share, and per ADS data)

                                       Three months Three months  Three months
                                           ended        ended        ended
                                        December 31  September 30  December 31
                                           2007         2008          2008


    Total net revenues                   397,538       594,403      414,413
    Total cost of revenues               314,823       466,065      412,068

    Gross profit                          82,715       128,338        2,345

    Selling expenses                       9,586        14,774       14,531
    General and administrative expenses   13,096        21,808       27,112
    Research and development expenses      3,132         4,682        4,529
    Total operating expenses              25,814        41,264       46,172

    Income/(loss) from operations         56,901        87,074      (43,827)

    Interest expenses                     (7,058)      (16,661)     (18,038)
    Interest income                        8,122         8,805       10,073
    Foreign exchange loss                 (3,733)      (16,612)      (3,188)
    Other income (expense)                 1,657        (3,171)     (19,712)

    Income/(loss) before income taxes     55,889        59,435      (74,692)
    Tax provision                         (5,186)       (3,651)       8,906

    Net income/(loss) after taxes
     before minority interest and
     equity in earnings of affiliates     50,703        55,784      (65,786)
    Minority interest                        936           141         (401)
    Equity in (loss) earnings of
     affiliates                           (1,020)            0          288

    Net income/(loss)                     50,619        55,925      (65,899)

    Net income per share and per ADS:
    - Basic                                 0.33          0.36        (0.42)
    - Diluted                               0.29          0.33        (0.42)

    Shares and ADSs used in
     computation:
    - Basic                          152,187,168   155,835,915  155,880,532
    - Diluted                        169,784,511   185,490,716  155,880,532

    Each ADS represents one ordinary share



    Reconciliations of non-GAAP results of operations measures to the nearest
                           comparable GAAP measures (*)
    (in $ millions, except margin data, per share and per ADS data, unaudited)


                                     Three months ended December 31, 2007

                                          Share-  Effect of
                                          based    Purchase Restructuring
                                GAAP   Compensation Price    Expenses Non-GAAP
                               Results            Allocation           Results
    Gross profit                 82.7      3.1       --         --       85.8
    Gross margin                 20.8%                                   21.6%

    Income from operations       56.9      6.6      0.8        0.5       64.8
    Income from operations
     margin                      14.3%                                   16.3%

    Net income                   50.6      6.6      0.5        0.5       58.2
    Net income margin            12.7%                                   14.7%

    Net income per share and
     per ADS
    -Basic                       0.33                                    0.38
    -Diluted                     0.29                                    0.34


                                  Three months ended September 30, 2008

                                          Share-  Effect of
                                          based    Purchase Restructuring
                                GAAP   Compensation Price    Expenses Non-GAAP
                               Results            Allocation           Results
    Gross profit                128.3      1.4       --         --      129.7
    Gross margin                 21.6%                                   21.8%

    Income from operations       87.1      3.9      1.6         --       92.6
    Income from operations
     margin                      14.6%                                   15.6%

    Net income                   55.9      3.9      0.5         --       60.3
    Net income margin             9.4%                                   10.1%

    Net income per share and
     per ADS
    -Basic                       0.36                                    0.39
    -Diluted                     0.33                                    0.35


                                       Three months ended December 31, 2008

                                                                   Effect of
                                                     Share-         Purchase
                                           GAAP       based          Price
                                         Results   Compensation    Allocation

    Gross profit                           2.3         1.6            -0.3
    Gross margin                           0.6%

    Loss from operations                 -43.8         3.8             1.8
    Loss from operations margin          -10.6%

    Net loss                             -65.9         3.8             2.0
    Net loss margin                      -15.9%

    Net loss per share and per ADS
    -Basic                               -0.42
    -Diluted                             -0.42

                                                           Convertible
                                                              notes     Non-
                                  Restructuring  Investment repurchase  GAAP
                                    Expenses     Impairment   gain     Results
    Gross profit                        --           --        --       3.6
    Gross margin                                                        0.9%

    Loss from operations                --           --        --     -38.2
    Loss from operations margin                                        -9.2%

    Net loss                            --         48.8     -31.1     -42.4
    Net loss margin                                                   -10.2%

    Net loss per share and per ADS
    -Basic                                                            -0.27
    -Diluted                                                          -0.27


                                  Twelve months ended December 31, 2007

                                          Share-  Effect of
                                          based    Purchase Restructuring
                                GAAP   Compensation Price    Expenses Non-GAAP
                               Results            Allocation           Results
    Gross profit                274.1     10.7        --        --      284.8
    Gross margin                 20.3%                                   21.1%

    Income from operations      184.0     26.9       2.4       1.8      215.1
    Income from operations
     margin                      13.6%                                   16.0%

    Net income                  171.3     26.9       1.0       1.8      201.0
    Net income margin            12.7%                                   14.9%

    Net income per share and
     per ADS
    -Basic                       1.13                                    1.33
    -Diluted                     1.02                                    1.19


                                      Twelve months ended December 31, 2008

                                                                   Effect of
                                                     Share-         Purchase
                                           GAAP       based          Price
                                         Results   Compensation    Allocation
    Gross profit                          342.9        5.9            0.8
    Gross margin                           17.8%

    Income from operations                182.5       16.2            7.0
    Income from operations margin           9.5%

    Net income                            111.0       16.2            4.8
    Net income margin                       5.8%

    Net income per share and per ADS
    -Basic                                 0.72
    -Diluted                               0.66

                                                           Convertible
                                                              notes     Non-
                                  Restructuring  Investment repurchase  GAAP
                                    Expenses     Impairment   gain     Results
    Gross profit                        --           --        --      349.6
    Gross margin                                                        18.2%

    Income from operations              --           --        --      205.7
    Income from operations margin                                       10.7%

    Net income                          --         48.8     -31.1      149.7
    Net income margin                                                    7.8%

    Net income per share and per ADS
    -Basic                                                              0.97
    -Diluted                                                            0.89

    (*) The adjustment is for share-based compensation, restructuring expenses
        and the amortization expenses incurred from the purchase price
        allocation effect related to the MSK Corporation, KSL-Kuttler
        Automation Systems GmbH and Suntech Energy Solutions Inc. acquisitions,
        extraordinary impairment on investments and gain from convertible
        notes buy-back.

For further information, please contact:

In China:
Rory Macpherson
Investor Relations Director
Tel: +86-21-6288-5574
Email: rory@suntech-power.com

In the United States:
Sanjay M. Hurry
Vice President
The Piacente Group, Inc.
Tel: +1-212-481-2050
Email: suntech@tpg-ir.com